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Airbnb says will shut domestic business in China from Jul 30

Airbnb says will shut domestic business in China from Jul 30

Airbnb has proven much more popular with people in China looking to book stays outside the country than it has been for arranging lodging in homes there. (Photo: AFP/Lionel BONAVENTURE)

SHANGHAI: Vacation rental firm Airbnb Inc said on Tuesday (May 24) it will shut down all listings and experiences in China from July 30.

The company made the announcement in a letter posted to its official WeChat account addressed to its Chinese users. It said, however, that Chinese users will still be allowed to book listings and experiences abroad.

Airbnb launched its business in China six years ago and has booked stays at homes there for about 25 million guests. Bookings at residences in China have accounted for only 1 per cent of Airbnb bookings in recent years, the company has reported.

Airbnb faced strong competition in China, and COVID-19 made its operations there more complicated and expensive.

China has persisted with its zero-COVID policy, imposing hard lockdowns and movement restrictions on several cities, even as much of the rest of the world has transitioned to living with the coronavirus.

The curbs, including stay-at-home orders in the economic hub of Shanghai and creeping restrictions across Beijing, have inflicted a heavy economic toll.

Airbnb expects outbound tourism from China which had been booming prior to the pandemic to rebound as COVID-19 restrictions ease and borders reopen.

Bookings on Airbnb hit a new high in this year's first quarter, the firm said in a recent earnings report, signalling that travel demand stifled by the COVID-19 pandemic is being unleashed.

Despite the Omicron surge and a persistent level of infections, Airbnb bookings for lodging and travel "experiences" topped 102 million in the first three months of this year, setting a new quarterly record, the company said in an earnings release.

"Guests are booking more than ever before," Airbnb told shareholders in a letter.

"Looking ahead, we see strong sustained pent-up demand."

The company said that trends of people booking stays away from urban areas and staying relatively close to home continue, but that guests are returning to cities and making cross-border trips.

Source: Agencies/gs

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